BPI earnings rise to record P48 billion
Zobel-led Bank of the Philippine Islands reported a 24.3 percent growth in net income to a record P48 billion in the first nine months of 2024 from P38.6 billion in the same period last year.
In a disclosure to the Philippine Stock Exchange, the bank said earnings growth was driven by robust revenue growth and sustained positive operating leverage.
Return on Equity was 15.9 percent and Return on Assets was 2.1 percent. Earnings per share for the first nine months stood at P9.10, up 16.5 percent from last year’s P7.81, notwithstanding the additional shares issued for the BPI and Robinsons Bank merger.
Total revenues of P125.8 billion increased 24.7% from the previous year’s P100.87 billion, bolstered by the strong performance of net interest income which grew 22.2 percent to P93.8 billion.
Average loans expanded 18.9 percent and net interest margin widened 22 basis points to 4.29 percent.
Non-interest income rose 32.4 percent to P31.9 billion from securities trading gains of P3.0 billion while fee income also increased 28.0 percent year-on-year to P26.4 billion, attributable to higher service charges, credit card fees, and bancassurance income.
Operating expenses reached P59.4 billion, up 22.1 percent, on higher costs for manpower, transaction processing, and technology, leading to a Cost-to-Income ratio of 47.2 percent.
The Bank recorded provisions of P4.8 billion, a 60.0 percent hike from last year. On a sequential quarter-on- quarter basis, the NPL ratio increased only 10bps to 2.30 percent, with sufficient NPL coverage at 111.17 percent.
For the third quarter of the year, the Bank posted its highest quarterly income to date of P17.4 billion, up 29.4 percent year-on-year, on the back of higher revenue growth of 26.3 percent to P44.6 billion.
Gross loans grew to P2.1 trillion, an 18.9 percent increase year-on-year, driven by consistent growth across all portfolios led by Personal Loans, up 103.3 percent, Business Banking, up 99.3 percent, and Microfinance, up 65.2 percent.
Total deposits stood at P2.5 trillion, up 14.5 percent year-on-year, with current and savings accounts ratio at 63.0percent and the Loan-to-Deposit Ratio at 85.9 percent.
Total assets stood at P3.2 trillion, up 17.2 percent year-on-year. Total equity stood at P433.3 billion, with an indicative Common Equity Tier 1 Ratio of 14.8 percent and a Capital Adequacy Ratio of 15.5 percent, both above regulatory requirements.